Your energy contract renewal is one of those things that sneaks up on you. One day you’re running your business, the next you’ve got a letter from your supplier saying your rates are about to change. And if you’re not prepared, you’ll either rush into a bad deal or do nothing and end up on expensive out-of-contract rates.
Here are five things to check before you renew — and they’ll take you less than 30 minutes.
1. Know your current rate
This sounds obvious, but you’d be surprised how many business owners can’t tell you what they’re paying per kWh for gas and electricity. It’s on your bill, but it’s often buried in a format that makes it deliberately hard to compare.
What to look for: Your unit rate (in pence per kWh) and your standing charge (a daily fixed fee). These are the two numbers that matter for comparison.
If you have a broker managing your account, ask them for a simple breakdown. If they can’t provide one quickly, that tells you something.
2. Check your contract end date
Your contract end date determines your negotiating window. Most businesses should start looking at the market 3-6 months before their contract ends. This gives you enough time to compare options without rushing.
If your contract has already expired and you haven’t renewed, you’re almost certainly on a rollover or deemed rate — which is significantly more expensive. This should be your top priority.
Where to find it: Your original contract confirmation email, your latest bill (sometimes), or by calling your supplier directly.
3. Review your consumption
Your energy consumption might have changed since you last signed a contract. If your business has grown, shrunk, changed operating hours, or added new equipment, your consumption profile is different — and your contract should reflect that.
Why it matters: Energy quotes are based on your consumption data. If that data is outdated, the quotes you receive might not be accurate. Worse, you might end up on a contract that doesn’t match your actual usage, which can lead to overpayment or unexpected charges.
Pull your last 12 months of bills and check whether your usage has been consistent or whether it’s trending up or down. If it’s changed significantly, make sure any new quotes are based on your current consumption, not old estimates.
4. Understand what you’re being offered
When your supplier sends a renewal offer, read the terms carefully. Pay attention to:
- The unit rate. Is it higher or lower than what you’re paying now? Don’t just look at the headline number — check whether it includes all charges or just the commodity cost.
- Contract length. Longer contracts (2-3 years) offer price certainty but lock you in. Shorter contracts (12 months) give flexibility but might cost more per unit. Neither is inherently better — it depends on your situation and the market.
- Exit fees. Some contracts have termination penalties. Know what they are before you sign.
- Green credentials. If your business has sustainability commitments, check whether the tariff includes genuinely renewable energy or just standard grid supply with a green label.
Important: Your supplier’s renewal offer is almost never the best deal available. It’s their opening position. The market is almost always more competitive than what lands in your inbox.
5. Get a second opinion
This is the simplest and most effective thing you can do. Before accepting your supplier’s renewal offer, get someone to compare it against the rest of the market.
A good energy broker will:
- Tell you whether your renewal offer is competitive
- Show you what’s available from other suppliers
- Handle the switch if you decide to move
- Tell you honestly if your current deal is already good
At Edge Energy, this takes less than five minutes to set up. You sign a Letter of Authority, we pull your data, and we show you what the market looks like. If your current offer is the best available, we’ll tell you.
The quick version
Before your energy contract renews:
- Know your current unit rate and standing charge
- Check when your contract actually ends
- Review whether your consumption has changed
- Read the renewal offer properly — don’t just accept it
- Get someone to compare the market for you
These five steps could save your business hundreds or thousands of pounds a year. And they take less time than making a cup of tea. Well, almost.
Want to talk about your energy contract?
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